12 USC 5907 - Anti-money laundering protections

U.S Code last checked for updates: Jul 29, 2025

§ 5907.

Anti-money laundering protections

(a)

Payment stablecoins issued by a foreign payment stablecoin issuer

(1)

In general

(2)

Enforcement

(A)

Authority

(B)

Designation as noncompliant

(3)

Appeal

(b)

Publication of designation; prohibition on secondary trading

(1)

In general

If a foreign payment stablecoin issuer does not come into compliance with the lawful order within 30 days from the date of issuance of the written notice described in subsection (a), except as provided in subsection (c), the Secretary of the Treasury shall—

(A)

publish the determination of noncompliance in the Federal Register, including a statement on the failure of the foreign payment stablecoin issuer to comply with the lawful order after the written notice; and

(B)

issue a notification in the Federal Register prohibiting digital asset service providers from facilitating secondary trading of payment stablecoins issued by the foreign payment stablecoin issuer in the United States.

(2)

Effective date of prohibition

(3)

Expiration of prohibition

(A)

In general

(B)

Rulemaking

(C)

Publication

(4)

Civil monetary penalties

The Secretary of the Treasury may impose a civil monetary penalty as follows:

(A)

Digital asset service providers

(B)

Foreign payment stablecoin issuers

(C)

Determination of the number of violations

(D)

Commencement of civil actions

The Secretary of the Treasury may commence a civil action against a foreign payment stablecoin issuer in a district court of the United States to—

(i)

recover a civil monetary penalty assessed under subparagraph (A) or (B);

(ii)

seek an injunction to bar the foreign payment stablecoin issuer from engaging in financial transactions in the United States or with United States persons; or

(iii)

seek an injunction to stop a digital asset service provider from offering on the platform of the digital asset service provider payment stablecoins issued by the foreign payment stablecoin issuer.

(c)

Waiver and licensing authority exemptions

(1)

In general

The Secretary of the Treasury may offer a waiver, general license, or specific license to any United States person engaging in secondary trading described in subsection (b)(1)(B) on a case-by-case basis if the Secretary determines that—

(A)

prohibiting secondary trading would adversely affect the financial system of the United States; or

(B)

the foreign payment stablecoin issuer is taking tangible steps to remedy the failure to comply with the lawful order that resulted in the noncompliance determination under subsection (a).

(2)

National security waiver

(3)

Waiver for intelligence and law enforcement activities

The head of a department or agency may waive the application of this section with respect to—

(A)

activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.), or any authorized intelligence activities of the United States; or

(B)

activities necessary to carry out or assist law enforcement activity of the United States.

(4)

Report required

(d)

Rule of construction

(Pub. L. 119–27, § 8, July 18, 2025, 139 Stat. 450.)

cite as: 12 USC 5907